Update on the 2026 Tax Policies for Real Estate Leasing by Households and Individuals: tax-exempt revenue thresholds, VAT and PIT rates, determination and calculation of tax liabilities, direct tax declaration or tax declaration and payment by organizations on behalf of individuals, required tax declaration dossiers, deadlines, and places for tax declaration and payment under the latest regulations.
1. What taxes are payable by households and individuals leasing out real estate?
- Legal basis: Article 3, Clauses 1 and 2 of Article 4 of Decree No. 68/2026/ND-CP, as amended and supplemented by Clause 1, Article 1 of Decree No. 141/2026/ND-CP.
- Where a household or individual leasing out real estate has annual revenue of VND 1 billion or less, they are not required to pay personal income tax (PIT) and are not subject to value-added tax (VAT).
Where a household or individual leasing out real estate has annual revenue of more than VND 1 billion, they are required to pay PIT and VAT calculated as follows:
VAT payable = Revenue × 5%
PIT payable = (Revenue – VND 1 billion) × 5%
Note: Where there are multiple lease agreements, the individual may select a lease agreement against which the VND 1 billion threshold is deducted for PIT calculation purposes. If the full VND 1 billion has not been deducted, other real estate lease agreements may be selected for the remaining deduction until the full VND 1 billion has been deducted.
Where the lease agreement provides that the lessee is responsible for declaring and paying tax on behalf of the lessor, when selecting a lease agreement against which the VND 1 billion deduction is applied before calculating PIT, the lease agreement must clearly specify the scope of tax declaration and payment on behalf of the lessor and the amount to be deducted for PIT calculation purposes.
Where a real estate lease agreement provides that the lessee is responsible for declaring and paying tax on behalf of the lessor but the full VND 1 billion has not been deducted, the individual may continue to select other real estate lease agreements to apply the remaining deduction until the full VND 1 billion has been deducted.
(Clause 4, Article 4 of Decree No. 68/2026/ND-CP, as amended and supplemented by Clause 1, Article 1 of Decree No. 141/2026/ND-CP)
2. Who is responsible for tax declaration?
- Legal basis: Points d and dd, Clause 3, Article 8 of Decree No. 68/2026/ND-CP.
- Households and individuals leasing out assets shall directly declare tax with the tax authority.
- Organizations leasing real estate from individuals shall declare and pay tax on behalf of the individuals where the real estate lease agreement stipulates that the lessee is responsible for declaring and paying tax on behalf of the lessor.
Note: Where an individual leases real estate to another individual, the lessor must directly declare tax.
3. Tax declaration dossiers
Households and individuals directly declaring tax on their real estate leasing activities with the tax authority shall submit a tax declaration form for real estate leasing activities, Form No. 01/BĐS, together with the Detailed List of Real Estate, Form No. 01/BK-BĐS, issued together with Circular No. 18/2026/TT-BTC.
Organizations declaring and paying tax on behalf of individuals leasing out real estate shall submit Form No. 01/TCKT, together with the Detailed List of Individuals Leasing Out Real Estate, Form No. 02/BK-KTBĐS, issued together with Circular No. 18/2026/TT-BTC.
4. Tax declaration deadlines for households and individuals leasing out real estate in 2026
- Legal basis: Clause 3, Article 8 of Decree No. 68/2026/ND-CP.
- Where households and individuals directly declare tax on real estate leasing activities: They may choose to declare tax twice a year or once annually.
- If tax is declared twice a year: the deadline for submission of the first tax declaration dossier is July 31 of the tax year, and the deadline for the second tax declaration dossier is January 31 of the following calendar year.
- If tax is declared once annually, the deadline for submission of the tax declaration dossier is January 31 of the following calendar year.
- Where an organization leases real estate from an individual and the lease agreement stipulates that the organization is responsible for declaring and paying tax on behalf of the individual: The organization shall declare and pay tax on behalf of the individual according to the rental payment period specified in the real estate lease agreement.
Note: Where an individual leases real estate to another individual, the lessor must directly declare tax.
5. Place of tax declaration and payment
- Legal basis: Clause 4, Article 8 of Decree No. 68/2026/ND-CP.
- An individual engaged in real estate leasing activities shall declare VAT and PIT and submit the tax declaration dossier to the tax authority where the leased real estate is located.
- An individual leasing out multiple real estate properties located within the same province or centrally administered city, or in different provinces or centrally administered cities, shall make a consolidated tax declaration for all such properties in a single tax declaration dossier and select one tax authority where one of the leased real estate properties is located to submit the tax declaration dossier, except where the lessee organization declares and pays tax on behalf of the individual. The individual shall declare the revenue, VAT and PIT payable and pay the relevant taxes according to each location where the leased real estate is situated.
DNP VIET NAM LAW FIRM – DNP VIET NAM LAW FIRM
🏢 5th Floor, No. 52 Nguyen Thi Nhung Street, Van Phuc Urban Area, Hiep Binh Ward, Ho Chi Minh City, Vietnam.
📞Hotline: 0987.290.273 (Master of Laws, Lawyer Dinh Van Tuan).
📩 Email: info@dnp-law.com.
Website: https://www.dnp-law.com/vi/
